On 7 February, the Reserve Bank of Australia (RBA) left the cash rate unchanged at 4.25%. This was a surprise move, as market analysts had expected the RBA to cut rates for the third meeting in a row. According to the RBA, information on the Australian economy continues to suggest growth close to trend, although with differences among sectors of economic activity. With regard to inflation, the Bank expects it to be in line with the 2.0% - 3.0% target range over both this year and the next. Monetary authorities judged that the setting of monetary policy was appropriate for the moment. However, the inflation outlook would provide scope for easier monetary policy, if growth falters in the coming months. According to analysts, the phrasing suggests that the RBA remains open to further rate cuts going forward.
Australia Monetary Policy
RBA leaves rate unchanged
February 7, 2012
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Australia Economic News
October 12, 2016
The Westpac-Melbourne Institute Survey of Consumer Sentiment increased 1.1% in October as the index rose from September’s 101.4 to 102.4.
October 11, 2016
The business confidence index published by the National Australia Bank (NAB) was stable in September at August’s 6 points.
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Nominal retail sales inched up 0.4% in August from the previous month in seasonally-adjusted terms, up from July’s flat reading.
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At its 4 October monetary policy meeting, the Reserve Bank of Australia (RBA) kept its policy rate steady at an all-time low of 1.50% after cutting its rate by 25 basis points twice this year, once in May and once in August.
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The labor market lost 3,900 net new jobs in August compared to the previous month in seasonally-adjusted terms.